clearly unfounded, and which lead to very false and erroneous conclusions.  Sir, let us see what the facts are.  Exchange on England has recently risen one or one and a half per cent, partly owing, perhaps, to the introduction of this bill into Congress.  Before this recent rise, and for the last six months, I understand its average may have been about seven and a half per cent advance.  Now, supposing this to be the real, and not merely, as it is, the nominal, par of exchange between us and England, what would it prove?  Nothing, except that funds were wanted by American citizens in England for commercial operations, to be carried on either in England or elsewhere.  It would not necessarily show that we were indebted to England; for, if we had occasion to pay debts in Russia or Holland, funds in England would naturally enough be required for such a purpose.  Even if it did prove that a balance was due England at the moment, it would have no tendency to explain to us whether our commerce with England had been profitable or unprofitable.

But it is not true, in point of fact, that the real price of exchange is seven and a half per cent advance, nor, indeed, that there is at the present moment any advance at all.  That is to say, it is not true that merchants will give such an advance, or any advance, for money in England, beyond what they would give for the same amount, in the same currency, here.  It will strike every one who reflects upon it, that, if there were a real difference of seven and a half per cent, money would be immediately shipped to England; because the expense of transportation would be far less than that difference.  Or commodities of trade would be shipped to Europe, and the proceeds remitted to England.  If it could so happen, that American merchants should be willing to pay ten per cent premium for money in England, or, in other words, that a real difference to that amount in the exchange should exist, its effects would be immediately seen in new shipments of our own commodities to Europe, because this state of things would create new motives.  A cargo of tobacco, for example, might sell at Amsterdam for the same price as before; but if its proceeds, when remitted to London, were advanced, as they would be in such case, ten per cent by the state of exchange, this would be so much added to the price, and would operate therefore as a motive for the exportation; and in this way national balances are, and always will be, adjusted.

To form any accurate idea of the true state of exchange between two countries, we must look at their currencies, and compare the quantities of gold and silver which they may respectively represent.  This usually explains the state of the exchanges; and this will satisfactorily account for the apparent advance now existing on bills drawn on England.  The English standard of value is gold; with us that office is performed by gold, and by silver also, at a fixed relation to